FIRST DIVISION

[G.R. No. 184885. March 7, 2012.]

ERNESTO G. YMBONG , petitioner, vs . ABS-CBN BROADCASTING

CORPORATION, VENERANDA SY AND DANTE LUZON , respondents.

DECISION

VILLARAMA, JR. , J : p

Before us is a Rule 45 Petition seeking to set aside the August 22, 2007 Decision 1 and
September 18, 2008 Resolution 2 of the Court of Appeals (CA) in CA-G.R. SP No. 86206
declaring petitioner to have resigned from work and not illegally dismissed.
The antecedent facts follow:
Petitioner Ernesto G. Ymbong started working for ABS-CBN Broadcasting Corporation
(ABS-CBN) in 1993 at its regional station in Cebu as a television talent, co-anchoring Hoy
Gising and TV Patrol Cebu. His stint in ABS-CBN later extended to radio when ABS-CBN
Cebu launched its AM station DYAB in 1995 where he worked as drama and voice talent,
spinner, scriptwriter and public affairs program anchor.
Like Ymbong, Leandro Patalinghug also worked for ABS-CBN Cebu. Starting 1995, he
worked as talent, director and scriptwriter for various radio programs aired over DYAB.
On January 1, 1996, the ABS-CBN Head Office in Manila issued Policy No. HR-ER-016 or the
"Policy on Employees Seeking Public Office." The pertinent portions read:
1. Any employee who intends to run for any public of ce position,
must le his/her letter of resignation , at least thirty (30) days prior to
the of cial ling of the certi cate of candidacy either for national or local
election.

xxx xxx xxx

3. Further, any employee who intends to join a political group/party
or even with no political af liation but who intends to openly and
aggressively campaign for a candidate or group of candidates
(e.g., publicly speaking/endorsing candidate, recruiting campaign workers,
e t c . ) must le a request for leave of absence subject to
management's approval . For this particular reason, the employee
should le the leave request at least thirty (30) days prior to the start of the
planned leave period. AHDcCT

xxx xxx xxx 3 [Emphasis and underscoring supplied.]

Because of the impending May 1998 elections and based on his immediate recollection of
the policy at that time, Dante Luzon, Assistant Station Manager of DYAB issued the
following memorandum:
TO : ALL CONCERNED
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 FROM : DANTE LUZON
DATE : MARCH 25, 1998
SUBJECT : AS STATED

Please be informed that per company policy, any employee/talent who wants
to run for any position in the coming election will have to le a leave of
absence the moment he/she files his/her certificate of candidacy.

The services rendered by the concerned employee/talent to this company will

then be temporarily suspended for the entire campaign/election period.

For strict compliance. 4 [Emphasis and underscoring supplied.]

Luzon, however, admitted that upon double-checking of the exact text of the policy and
subsequent con rmation with the ABS-CBN Head Of ce, he saw that the policy actually
required suspension for those who intend to campaign for a political party or candidate
and resignation for those who will actually run in the elections. 5
After the issuance of the March 25, 1998 Memorandum, Ymbong got in touch with Luzon.
Luzon claims that Ymbong approached him and told him that he would leave radio for a
couple of months because he will campaign for the administration ticket. It was only after
the elections that they found out that Ymbong actually ran for public of ce himself at the
eleventh hour. Ymbong, on the other hand, claims that in accordance with the March 25,
1998 Memorandum, he informed Luzon through a letter that he would take a few months
leave of absence from March 8, 1998 to May 18, 1998 since he was running for councilor
of Lapu-Lapu City.
As regards Patalinghug, Patalinghug approached Luzon and advised him that he will run as
councilor for Naga, Cebu. According to Luzon, he clari ed to Patalinghug that he will be
considered resigned and not just on leave once he les a certi cate of candidacy. Thus,
Patalinghug wrote Luzon the following letter on April 13, 1998:
Dear Mr. Luzon,

I'm submitting to you my letter of resignation as your Drama Production Chief

and Talent due to your company's policy that every person connected to ABS-CBN
that should seek an elected position in the government will be forced to resigned
(sic) from his position. So herewith I'm submitting my resignation with a hard
heart. But I'm still hoping to be connected again with your prestigious company
after the election[s] should you feel that I'm still an asset to your drama
production department. I'm looking forward to that day and I'm very happy and
proud that I have served for two and a half years the most stable and the most
prestigious Radio and TV Network in the Philippines. TaCSAD

As a friend[,] wish me luck and Pray for me. Thank you.

Very Truly Yours,

(Sgd.)
Leandro "Boy" Patalinghug 6

Unfortunately, both Ymbong and Patalinghug lost in the May 1998 elections.
Later, Ymbong and Patalinghug both tried to come back to ABS-CBN Cebu. According to
Luzon, he informed them that they cannot work there anymore because of company policy.
This was stressed even in subsequent meetings and they were told that the company was
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 not allowing any exceptions. ABS-CBN, however, agreed out of pure liberality to give them
a chance to wind up their participation in the radio drama, Nagbabagang Langit, since it
was rating well and to avoid an abrupt ending. The agreed winding-up, however, dragged
on for so long prompting Luzon to issue to Ymbong the following memorandum dated
September 14, 1998:
TO : NESTOR YMBONG
FROM : DANTE LUZON
SUBJECT : AS STATED
DATE : 14 SEPT. 1998

Please be reminded that your services as drama talent had already been
automatically terminated when you ran for a local government position last
election.

The Management however gave you more than enough time to end your drama
participation and other involvement with the drama department.
It has been decided therefore that all your drama participation shall be terminated
effective immediately. However, your involvement as drama spinner/narrator of
the drama "NAGBA[BA]GANG LANGIT" continues until its writer/director Mr.
Leandro Patalinghug wraps it up one week upon receipt of a separate memo
issued to him. 7

Ymbong in contrast contended that after the expiration of his leave of absence, he
reported back to work as a regular talent and in fact continued to receive his salary. On
September 14, 1998, he received a memorandum stating that his services are being
terminated immediately, much to his surprise. Thus, he led an illegal dismissal complaint
8 against ABS-CBN, Luzon and DYAB Station Manager Veneranda Sy. He argued that the
ground cited by ABS-CBN for his dismissal was not among those enumerated in the Labor
Code, as amended. And even granting without admitting the existence of the company
policy supposed to have been violated, Ymbong averred that it was necessary that the
company policy meet certain requirements before willful disobedience of the policy may
constitute a just cause for termination. Ymbong further argued that the company policy
violates his constitutional right to suffrage. 9
Patalinghug likewise filed an illegal dismissal complaint 1 0 against ABS-CBN.
ABS-CBN prayed for the dismissal of the complaints arguing that there is no employer-
employee relationship between the company and Ymbong and Patalinghug. ABS-CBN
contended that they are not employees but talents as evidenced by their talent contracts.
However, notwithstanding their status, ABS-CBN has a standing policy on persons
connected with the company whenever they will run for public office. 1 1 cHATSI

On July 14, 1999, the Labor Arbiter rendered a decision 1 2 nding the dismissal of Ymbong
and Patalinghug illegal, thus:
WHEREFORE, in the light of the foregoing, judgment is rendered nding the
dismissal of the two complainants illegal. An order is issued directing respondent
ABS[-]CBN to immediately reinstate complainants to their former positions
without loss of seniority rights plus the payment of backwages in the amount of
P200,000.00 to each complainant.
All other claims are dismissed.
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 SO ORDERED. 1 3

The Labor Arbiter found that there exists an employer-employee relationship between
ABS-CBN and Ymbong and Patalinghug considering the stipulations in their appointment
letters/talent contracts. The Labor Arbiter noted particularly that the appointment
letters/talent contracts imposed conditions in the performance of their work, speci cally
on attendance and punctuality, which effectively placed them under the control of ABS-
CBN. The Labor Arbiter likewise ruled that although the subject company policy is
reasonable and not contrary to law, the same was not made known to Ymbong and
Patalinghug and in fact was superseded by another one embodied in the March 25, 1998
Memorandum issued by Luzon. Thus, there is no valid or authorized cause in terminating
Ymbong and Patalinghug from their employment.
In its memorandum of appeal 1 4 before the National Labor Relations Commission (NLRC),
ABS-CBN contended that the Labor Arbiter has no jurisdiction over the case because there
is no employer-employee relationship between the company and Ymbong and Patalinghug,
and that Sy and Luzon mistakenly assumed that Ymbong and Patalinghug could just le a
leave of absence since they are only talents and not employees. In its Supplemental
Appeal, 1 5 ABS-CBN insisted that Ymbong and Patalinghug were engaged as radio talents
for DYAB dramas and personality programs and their contract is one between a self-
employed contractor and the hiring party which is a standard practice in the broadcasting
industry. It also argued that the Labor Arbiter should not have made much of the
provisions on Ymbong's attendance and punctuality since such requirement is a dictate of
the programming of the station, the slating of shows at regular time slots, and availability
of recording studios — not an attempt to exercise control over the manner of his
performance of the contracted anchor work within his scheduled spot on air. As for the
pronouncement that the company policy has already been superseded by the March 25,
1998 Memorandum issued by Luzon, the latter already clari ed that it was the very policy
he sought to enforce. This matter was relayed by Luzon to Patalinghug when the latter
disclosed his plans to join the 1998 elections while Ymbong only informed the company
that he was campaigning for the administration ticket and the company had no inkling that
he will actually run until the issue was already moot and academic. ABS-CBN further
contended that Ymbong and Patalinghug's "reinstatement" is legally and physically
impossible as the talent positions they vacated no longer exist. Neither is there basis for
the award of back wages since they were not earning a monthly salary but paid talent fees
on a per production/per script basis. Attached to the Supplemental Appeal is a Sworn
Statement 1 6 of Luzon.
On March 8, 2004, the NLRC rendered a decision 1 7 modifying the labor arbiter's decision.
The fallo of the NLRC decision reads:
WHEREFORE, premises considered, the decision of Labor Arbiter Nicasio C.
Aninon dated 14 July 1999 is MODIFIED, to wit:

Ordering respondent ABS-CBN to reinstate complainant Ernesto G. Ymbong and

to pay his full backwages computed from 15 September 1998 up to the time of
his actual reinstatement.
SO ORDERED. 1 8 EHaASD

The NLRC dismissed ABS-CBN's Supplemental Appeal for being led out of time. The
NLRC ruled that to entertain the same would be to allow the parties to submit their appeal
on piecemeal basis, which is contrary to the agency's duty to facilitate speedy disposition
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 of cases. The NLRC also held that ABS-CBN wielded the power of control over Ymbong
and Patalinghug, thereby proving the existence of an employer-employee relationship
between them.
As to the issue of whether they were illegally dismissed, the NLRC treated their cases
differently. In the case of Patalinghug, it found that he voluntarily resigned from
employment on April 21, 1998 when he submitted his resignation letter. The NLRC noted
that although the tenor of the resignation letter is somewhat involuntary, he knew that it is
the policy of the company that every person connected therewith should resign from his
employment if he seeks an elected position in the government. As to Ymbong, however,
the NLRC ruled otherwise. It ruled that the March 25, 1998 Memorandum merely states
that an employee who seeks any elected position in the government will only merit the
temporary suspension of his services. It held that under the principle of social justice, the
March 25, 1998 Memorandum shall prevail and ABS-CBN is estopped from enforcing the
September 14, 1998 memorandum issued to Ymbong stating that his services had been
automatically terminated when he ran for an elective position.
ABS-CBN moved to reconsider the NLRC decision, but the same was denied in a Resolution
dated June 21, 2004. 1 9
Imputing grave abuse of discretion on the NLRC, ABS-CBN led a petition for certiorari 2 0
before the CA alleging that:
I.

RESPONDENT NLRC COMMITTED A GRAVE ABUSE OF DISCRETION AND

SERIOUSLY MISAPPRECIATED THE FACTS IN NOT HOLDING THAT
RESPONDENT YMBONG IS A FREELANCE RADIO TALENT AND MEDIA
PRACTITIONER — NOT A "REGULAR EMPLOYEE" OF PETITIONER — TO WHOM
CERTAIN PRODUCTION WORK HAD BEEN OUTSOURCED BY ABS-CBN CEBU
UNDER AN INDEPENDENT CONTRACTORSHIP SITUATION, THUS RENDERING
THE LABOR COURTS WITHOUT JURISDICTION OVER THE CASE IN THE
ABSENCE OF EMPLOYMENT RELATIONS BETWEEN THE PARTIES.
II.

RESPONDENT NLRC COMMITTED A GRAVE ABUSE OF DISCRETION IN

DECLARING RESPONDENT YMBONG TO BE A REGULAR EMPLOYEE OF
PETITIONER AS TO CREATE A CONTRACTUAL EMPLOYMENT RELATION
BETWEEN THEM WHEN NONE EXISTS OR HAD BEEN AGREED UPON OR
OTHERWISE INTENDED BY THE PARTIES.

III.
EVEN ASSUMING THE ALLEGED EMPLOYMENT RELATION TO EXIST FOR THE
SAKE OF ARGUMENT, RESPONDENT NLRC IN ANY CASE COMMITTED A GRAVE
ABUSE OF DISCRETION IN NOT SIMILARLY UPHOLDING AND APPLYING
COMPANY POLICY NO. HR-ER-016 IN THE CASE OF RESPONDENT YMBONG AND
DEEMING HIM AS RESIGNED AND DISQUALIFIED FROM FURTHER
ENGAGEMENT AS A RADIO TALENT IN ABS-CBN CEBU AS A CONSEQUENCE OF
HIS CANDIDACY IN THE 1998 ELECTIONS, AS RESPONDENT NLRC HAD DONE IN
THE CASE OF PATALINGHUG. EAHcCT

IV.
RESPONDENT NLRC COMMITTED A GRAVE ABUSE OF DISCRETION AND
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 DENIED DUE PROCESS TO PETITIONER IN REFUSING TO CONSIDER ITS
SUPPLEMENTAL APPEAL, DATED OCTOBER 18, 1999, "FOR BEING FILED OUT
OF TIME" CONSIDERING THAT THE FILING OF SUCH A PLEADING IS NOT IN ANY
CASE PROSCRIBED AND RESPONDENT NLRC IS AUTHORIZED TO CONSIDER
ADDITIONAL EVIDENCE ON APPEAL; MOREOVER, TECHNICAL RULES OF
EVIDENCE DO NOT APPLY IN LABOR CASES.

V.
RESPONDENT NLRC COMMITTED A GRAVE ABUSE OF DISCRETION IN
GRANTING THE RELIEF OF REINSTATEMENT AND BACKWAGES TO
RESPONDENT YMBONG SINCE HE NEVER OCCUPIED ANY "REGULAR" POSITION
IN PETITIONER FROM WHICH HE COULD HAVE BEEN "ILLEGALLY DISMISSED,"
NOR ARE ANY OF THE RADIO PRODUCTIONS IN WHICH HE HAD DONE TALENT
WORK FOR PETITIONER STILL EXISTING. INDEED, THERE IS NO BASIS
WHATSOEVER FOR THE AWARD OF BACKWAGES TO RESPONDENT YMBONG IN
THE AMOUNT OF P200,000.00 CONSIDERING THAT, AS SHOWN BY THE
UNCONTROVERTED EVIDENCE, HE WAS NOT EARNING A MONTHLY "SALARY"
OF "P20,000.00," AS HE FALSELY CLAIMS, BUT WAS PAID TALENT FEES ON A
"PER PRODUCTION/PER SCRIPT" BASIS WHICH AVERAGED LESS THAN
P10,000.00 PER MONTH IN TALENT FEES ALL IN ALL. 2 1

On August 22, 2007, the CA rendered the assailed decision reversing and setting aside the
March 8, 2004 Decision and June 21, 2004 Resolution of the NLRC. The CA declared
Ymbong resigned from employment and not to have been illegally dismissed. The award
of full back wages in his favor was deleted accordingly.
The CA ruled that ABS-CBN is estopped from claiming that Ymbong was not its employee
after applying the provisions of Policy No. HR-ER-016 to him. It noted that said policy is
entitled "Policy on Employees Seeking Public Of ce" and the guidelines contained therein
speci cally pertain to employees and did not even mention talents or independent
contractors. It held that it is a complete turnaround on ABS-CBN's part to later argue that
Ymbong is only a radio talent or independent contractor and not its employee. By applying
the subject company policy on Ymbong, ABS-CBN had explicitly recognized him to be an
employee and not merely an independent contractor.
The CA likewise held that the subject company policy is the controlling guideline and
therefore, Ymbong should be considered resigned from ABS-CBN. While Luzon has policy-
making power as assistant radio manager, he had no authority to issue a memorandum
that had the effect of repealing or superseding a subsisting policy. Contrary to the ndings
of the Labor Arbiter, the subject company policy was effective at that time and continues
to be valid and subsisting up to the present. The CA cited Patalinghug's resignation letter
to buttress this conclusion, noting that Patalinghug openly admitted in his letter that his
resignation was in line with the said company policy. Since ABS-CBN applied Policy No.
HR-ER-016 to Patalinghug, there is no reason not to apply the same regulation to Ymbong
who was on a similar situation as the former. Thus, the CA found that the NLRC
overstepped its area of discretion to a point of grave abuse in declaring Ymbong to have
been illegally terminated. The CA concluded that there is no illegal dismissal to speak of in
the instant case as Ymbong is considered resigned when he ran for an elective post
pursuant to the subject company policy. DaECST

Hence, this petition.

Petitioner argues that the CA gravely erred: (1) in upholding Policy No. HR-ER-016; (2) in
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 upholding the validity of the termination of Ymbong's services; and (3) when it reversed the
decision of the NLRC 4th Division of Cebu City which af rmed the decision of Labor Arbiter
Nicasio C. Aniñon. 2 2
Ymbong argues that the subject company policy is a clear interference and a gross
violation of an employee's right to suffrage. He is surprised why it was easy for the CA to
rule that Luzon's memorandum ran counter to an existing policy while on the other end, it
did not see that it was in con ict with the constitutional right to suffrage. He also points
out that the issuance of the March 25, 1998 Memorandum was precisely an exercise of the
management power to which an employee like him must respect; otherwise, he will be
sanctioned for disobedience or worse, even terminated. He was not in a position to know
which between the two issuances was correct and as far as he is concerned, the March 25,
1998 Memorandum superseded the subject company policy. Moreover, ABS-CBN cannot
disown acts of its officers most especially since it prejudiced his property rights. 2 3
As to the validity of his dismissal, Ymbong contends that the ground relied upon by ABS-
CBN is not among the just and authorized causes provided in the Labor Code, as amended.
And even assuming the subject company policy passes the test of validity under the
pretext of the right of the management to discipline and terminate its employees, the
exercise of such right is not without bounds. Ymbong avers that his automatic termination
was a blatant disregard of his right to due process. He was never asked to explain why he
did not tender his resignation before he ran for public of ce as mandated by the subject
company policy. 2 4 ACIESH

Ymbong likewise asseverates that both the Labor Arbiter and the NLRC were consistent in
their ndings that he was illegally dismissed. It is settled that factual ndings of labor
administrative of cials, if supported by substantial evidence, are accorded not only great
respect but even finality. 2 5
ABS-CBN, for its part, counters that the validity of policies such as Policy No. HR-ER-016
has long been upheld by this Court which has ruled that a media company has a right to
impose a policy providing that employees who le their certi cates of candidacy in any
election shall be considered resigned. 2 6 Moreover, case law has upheld the validity of the
exercise of management prerogatives even if they appear to limit the rights of employees
as long as there is no showing that management prerogatives were exercised in a manner
contrary to law. 2 7 ABS-CBN contends that being the largest media and entertainment
company in the country, its reputation stems not only from its ability to deliver quality
entertainment programs but also because of neutrality and impartiality in delivering news.
28 IcaEDC

ABS-CBN further argues that nothing in the company policy prohibits its employees from
either accepting a public appointive position or from running for public of ce. Thus, it
cannot be considered as violative of the constitutional right of suffrage. Moreover, the
Supreme Court has recognized the employer's right to enforce occupational quali cations
as long as the employer is able to show the existence of a reasonable business necessity
in imposing the questioned policy. Here, Policy No. HR-ER-016 itself states that it was
issued "to protect the company from any public misconceptions" and "[t]o preserve its
objectivity, neutrality and credibility." Thus, it cannot be denied that it is reasonable under
the circumstances. 2 9
ABS-CBN likewise opposes Ymbong's claim that he was terminated. ABS-CBN argues that
on the contrary, Ymbong's unilateral act of ling his certi cate of candidacy is an overt act
tantamount to voluntary resignation on his part by virtue of the clear mandate found in
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 Policy No. HR-ER-016. Ymbong, however, failed to le his resignation and in fact misled his
superiors by making them believe that he was going on leave to campaign for the
administration candidates but in fact, he actually ran for councilor. He also claims to have
fully apprised Luzon through a letter of his intention to run for public of ce, but he failed to
adduce a copy of the same. 3 0
As to Ymbong's argument that the CA should not have reversed the ndings of the Labor
Arbiter and the NLRC, ABS-CBN asseverates that the CA is not precluded from making its
own ndings most especially if upon its own review of the case, it has been revealed that
the NLRC, in af rming the ndings of the Labor Arbiter, committed grave abuse of
discretion amounting to lack or excess of jurisdiction when it failed to apply the subject
company policy in Ymbong's case when it readily applied the same to Patalinghug. 3 1
Essentially, the issues to be resolved in the instant petition are: (1) whether Policy No. HR-
ER-016 is valid; (2) whether the March 25, 1998 Memorandum issued by Luzon
superseded Policy No. HR-ER-016; and (3) whether Ymbong, by seeking an elective post, is
deemed to have resigned and not dismissed by ABS-CBN.
Policy No. HR-ER-016 is valid.
This is not the rst time that this Court has dealt with a policy similar to Policy No. HR-ER-
016. In the case of Manila Broadcasting Company v. NLRC, 3 2 this Court ruled:
What is involved in this case is an unwritten company policy considering any
employee who les a certi cate of candidacy for any elective or local of ce as
resigned from the company. Although §11(b) of R.A. No. 6646 does not require
mass media commentators and announcers such as private respondent to resign
from their radio or TV stations but only to go on leave for the duration of the
campaign period, we think that the company may nevertheless validly require
them to resign as a matter of policy. In this case, the policy is justi ed on the
following grounds:

Working for the government and the company at the same time is clearly
disadvantageous and prejudicial to the rights and interest not only of the
company but the public as well. In the event an employee wins in an
election, he cannot fully serve, as he is expected to do, the interest of his
employer. The employee has to serve two (2) employers, obviously
detrimental to the interest of both the government and the private
employer.
In the event the employee loses in the election, the impartiality and cold
neutrality of an employee as broadcast personality is suspect, thus readily
eroding and adversely affecting the con dence and trust of the listening
public to employer's station. 3 3
DISEaC

ABS-CBN, like Manila Broadcasting Company, also had a valid justi cation for Policy No.
HR-ER-016. Its rationale is embodied in the policy itself, to wit:
Rationale:

ABS-CBN BROADCASTING CORPORATION strongly believes that it is to the

best interest of the company to continuously remain apolitical. While it
encourages and supports its employees to have greater political
awareness and for them to exercise their right to suffrage, the
company, however, prefers to remain politically independent and
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 unattached to any political individual or entity.
Therefore, employees who [intend] to run for public of ce or accept
political appointment should resign from their positions, in order to
protect the company from any public misconceptions. To preserve its
objectivity, neutrality and credibility , the company reiterates the following
policy guidelines for strict implementation.
xxx xxx xxx 3 4 [Emphasis supplied.]

We have consistently held that so long as a company's management prerogatives are

exercised in good faith for the advancement of the employer's interest and not for the
purpose of defeating or circumventing the rights of the employees under special laws or
under valid agreements, this Court will uphold them. 3 5 In the instant case, ABS-CBN validly
justi ed the implementation of Policy No. HR-ER-016. It is well within its rights to ensure
that it maintains its objectivity and credibility and freeing itself from any appearance of
impartiality so that the con dence of the viewing and listening public in it will not be in any
way eroded. Even as the law is solicitous of the welfare of the employees, it must also
protect the right of an employer to exercise what are clearly management prerogatives.
The free will of management to conduct its own business affairs to achieve its purpose
cannot be denied. 3 6
It is worth noting that such exercise of management prerogative has earned a stamp of
approval from no less than our Congress itself when on February 12, 2001, it enacted
Republic Act No. 9006, otherwise known as the "Fair Election Act." Section 6.6 thereof
reads:
6.6. Any mass media columnist, commentator, announcer, reporter,
on-air correspondent or personality who is a candidate for any elective
public of ce or is a campaign volunteer for or employed or retained in
any capacity by any candidate or political party shall be deemed
resigned, if so required by their employer , or shall take a leave of absence
from his/her work as such during the campaign period: Provided, That any media
practitioner who is an of cial of a political party or a member of the campaign
staff of a candidate or political party shall not use his/her time or space to favor
any candidate or political party. [Emphasis and underscoring supplied.]

Policy No. HR-ER-016 was not

superseded by the March 25, 1998
Memorandum
The CA correctly ruled that though Luzon, as Assistant Station Manager for Radio of ABS-
CBN, has policy-making powers in relation to his principal task of administering the
network's radio station in the Cebu region, the exercise of such power should be in accord
with the general rules and regulations imposed by the ABS-CBN Head Of ce to its
employees. Clearly, the March 25, 1998 Memorandum issued by Luzon which only requires
employees to go on leave if they intend to run for any elective position is in absolute
contradiction with Policy No. HR-ER-016 issued by the ABS-CBN Head Of ce in Manila
which requires the resignation, not only the ling of a leave of absence, of any employee
who intends to run for public of ce. Having been issued beyond the scope of his authority,
the March 25, 1998 Memorandum is therefore void and did not supersede Policy No. HR-
ER-016.
Also worth noting is that Luzon in his Sworn Statement admitted the inaccuracy of his
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 recollection of the company policy when he issued the March 25, 1998 Memorandum and
stated therein that upon double-checking of the exact text of the policy statement and
subsequent con rmation with the ABS-CBN Head Of ce in Manila, he learned that the
policy required resignation for those who will actually run in elections because the
company wanted to maintain its independence. Since the of cer who himself issued the
subject memorandum acknowledged that it is not in harmony with the Policy issued by the
upper management, there is no reason for it to be a source of right for Ymbong. cACTaI

Ymbong is deemed resigned when

he ran for councilor.
As Policy No. HR-ER-016 is the subsisting company policy and not Luzon's March 25, 1998
Memorandum, Ymbong is deemed resigned when he ran for councilor.
We nd no merit in Ymbong's argument that "[his] automatic termination . . . was a blatant
[disregard] of [his] right to due process" as he was "never asked to explain why he did not
tender his resignation before he ran for public office as mandated by [the subject company
policy]." 3 7 Ymbong's overt act of running for councilor of Lapu-Lapu City is tantamount to
resignation on his part. He was separated from ABS-CBN not because he was dismissed
but because he resigned. Since there was no termination to speak of, the requirement of
due process in dismissal cases cannot be applied to Ymbong. Thus, ABS-CBN is not duty-
bound to ask him to explain why he did not tender his resignation before he ran for public
office as mandated by the subject company policy.
In addition, we do not subscribe to Ymbong's claim that he was not in a position to know
which of the two issuances was correct. Ymbong most likely than not, is fully aware that
the subsisting policy is Policy No. HR-ER-016 and not the March 25, 1998 Memorandum
and it was for this reason that, as stated by Luzon in his Sworn Statement, he only told the
latter that he will only campaign for the administration ticket and not actually run for an
elective post. Ymbong claims he had fully apprised Luzon by letter of his plan to run and
even led a leave of absence but records are bereft of any proof of said claim. Ymbong
claims that the letter stating his intention to go on leave to run in the election is attached to
his Position Paper as Annex "A," a perusal of said pleading attached to his petition before
this Court, however, show that Annex "A" was not his letter to Luzon but the September 14,
1998 Memorandum informing Ymbong that his services had been automatically
terminated when he ran for a local government position.
Moreover, as pointed out by ABS-CBN, had Ymbong been truthful to his superiors, they
would have been able to clarify to him the prevailing company policy and inform him of the
consequences of his decision in case he decides to run, as Luzon did in Patalinghug's case.
WHEREFORE , the petition for review on certiorari is DENIED for lack of merit.
With costs against petitioner. HCTAEc

SO ORDERED .
Corona, C.J., Leonardo-de Castro, Bersamin and Perlas-Bernabe, * JJ., concur.

Footnotes

* Designated additional member per Special Order No. 1207 dated February 23, 2012.
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 1. Rollo, pp. 150-161. Penned by Associate Justice Agustin S. Dizon with Associate
Justices Francisco P. Acosta and Stephen C. Cruz concurring.
2. Id. at 169-170. Penned by Associate Justice Francisco P. Acosta with Associate Justices
Priscilla Baltazar-Padilla and Stephen C. Cruz concurring.
3. Id. at 54.
4. CA rollo, p. 168.
5. Id. at 157.
6. Id. at 171.
7. Id. at 172.
8. Id. at 65.
9. Id. at 67-70.
10. Id. at 64.
11. Id. at 76.
12. Id. at 86-93.
13. Id. at 92-93.
14. Rollo, pp. 268-272.
15. CA rollo, pp. 101-146.

16. Id. at 147-161.

17. Rollo, pp. 74-82.
18. Id. at 82.
19. CA rollo, pp. 61-62.

20. Id. at 2-48.

21. Id. at 13-14.
22. Rollo, p. 19.
23. Id. at 21-23.
24. Id. at 27-32.
25. Id. at 33.
26. Id. at 212-213.
27. Id. at 213.
28. Id. at 217.
29. Id. at 217-218.
30. Id. at 219-220.
31. Id. at 231.
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 32. G.R. No. 121975, August 20, 1998, 294 SCRA 486.

33. Id. at 490-491.

34. Rollo, p. 54.
35. San Miguel Brewery Sales Force Union (PTGWO) v. Ople , G.R. No. 53515, February 8,
1989, 170 SCRA 25, 28, citing LVN Pictures Employees and Workers Asso. v. LVN
Pictures, Inc., Nos. L-23495 & L-26432, September 30, 1970, 35 SCRA 147; Phil. American
Embroideries, Inc. v. Embroidery and Garment Workers Union , No. L-20143, January 27,
1969, 26 SCRA 634; and Phil. Re ning Co., Inc. v. Garcia , Nos. L-21871 & L-21962,
September 27, 1966, 18 SCRA 107.

36. Abbot Laboratories (Phils.), Inc. v. NLRC, No. L-76959, October 12, 1987, 154 SCRA 713,
717, citing Dangan v. National Labor Relations Commission , Nos. 63127-28, February
20, 1984, 127 SCRA 706.
37. Rollo, pp. 31-32.

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